In an interview with DefenseOne, CSET's Ryan Fedasiuk and Will Hunt discussed efforts the U.S. can take to reshore semiconductor manufacturing after the House passed the CHIPS Act.

If the U.S. semiconductor industry expands with the passing of the CHIPS Act, about 13,000 new engineers and software developers will be needed in short order, and some 3,500 positions could be unfilled according to a CSET report.

In this condensed version of his June 2022 report, written for Semiconductor Digest, John VerWey outlines how targeted investment incentives to increase U.S.-based advanced packaging capacity are also important for increasing semiconductor supply chain resilience.

A CSET report highlights the potential for China to supplant the U.S. as the world leader in leading-edge semiconductor production.

Nationwide expansion of semiconductor manufacturing facilities could create as many as 27,000 jobs in the semiconductor industry according to a CSET report.

As an integral player in advanced semiconductor supply chains, the United States enjoys advantages over China in producing and accessing chips for artificial intelligence and other leading-edge computing technologies. However, a lack of domestic production capacity threatens U.S. semiconductor access. The United States can strengthen its advantages by working with allies and partners to prevent China from producing leading-edge chips and by reshoring its own domestic chipmaking capacity.

Research Analyst Will Hunt recommends allocating at least $23 billion of the $37 billion manufacturing incentives in the CHIPS Act for leading-node logic chips if the U.S. wants to produce advanced technological military equipment.

A CSET study found that the United States currently builds fewer fabs than the rest of the world.

According to Research Analyst Will Hunt, leading node chips are necessary if the United States wants to maintain its technological military edge.

The semiconductor industry and the U.S. government are engaged in ambitious plans to expand domestic semiconductor manufacturing capacity. Previous CSET research has found that the CHIPS for America Act incentives, if carefully targeted and augmented by adequate regulatory and workforce support, could reverse the observable decline in U.S. semiconductor manufacturing capacity since 1990. This paper argues that targeted investment incentives to increase U.S.-based advanced packaging capacity are also important for innovation, supply chain security, and ongoing semiconductor industry leadership.